In a Particular Country in 1998, the Average Worker Needed

question 110

Multiple Choice

In a particular country in 1998, the average worker needed to work 25 hours to produce 40 units of output. In that same country in 2008, the average worker needed to work 40 hours to produce 68 units of output. In that country, the productivity of the average worker

• A)decreased by 1.7 percent between 1998 and 2008.
• B)remained unchanged between 1998 and 2008.
• C)increased by 4.75 percent between 1998 and 2008.
• D)increased by 6.25 percent between 1998 and 2008.

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Definitions:

Foreign Corporation

A corporation that is incorporated in one jurisdiction but is doing business and registered to operate in another jurisdiction.

Thin Capitalization

A financial situation in which a company has a high level of debt compared to its equity.

Debt-to-Equity Ratio

A financial metric that shows the comparative ratio of debt to shareholders' equity utilized to fund a company's assets.

Subsidiary Company

A company that is completely or partially owned and wholly controlled by another company, known as the parent company.